Thirteen colony distilleries essay

High competition implies reduced market share, thus reduced sales. Competition arises in the following forms: Multiple equal competitors: U. S. spirits industry has many competitors operating an equal level of spirits quality as Thirteen Colony Distilleries, thus high competition. Therefore, there is a need to engage in aggressive activities to gain larger market share. Diversity of competition: Spirits industry has different companies with different origins and strategies and diverse ways of doing business. This makes marketing based on target market which is different for most companies. Capacity increases: If companies increase production capacity so as to maximize economies of scale; there is a disruption in market demand and supply. This leads to overcapacity and cutting of prices to ensure no products remain unsold.

Strategic focus: Companies may have high stakes to ensure they stay in business for long duration. Faced with stiff competition, companies in spirits industry seek to differentiate themselves by innovating better products and get more customers and larger market share. This is beneficial to consumers by provision of more variety of products and improved quality of products or services. b) Lower prices Competition leads companies to come up with lower-cost manufacturing processes, which boosts their profitability helping them pass savings to consumers and puts them in a better position to compete favorably with competitors. In the spirits industry, there are little or no switching costs and several brands to choose from, hence high chances of consumers shifting to a competitor. To avoid this, Thirteen Colony Distilleries should attempt to reduce production costs and offer good prices to the consumers.

Thirteen Colony Distilleries should always better their products since its competitors are regularly innovating new products and new entrants are causing disruptions in the market place. Thirteen Colony Distilleries should innovate products so often that competitors find hard to follow. Innovation is not only in terms of products but also delivery and services. Thirteen Colony Distilleries can add capabilities to their business processes by using current technology to market their products. They can include delivery option, people place orders and get products delivered at their doorstep. This will make the company an industry leader. If Thirteen Colony Distilleries lacks the resources to develop new products; it can innovate the processes. The company can innovate the ways their goods or services go to the market.

Beating competition doesn’t necessarily imply offering better quality at lower prices. It involves level of innovation in either products or services. Thirteen Colony Distilleries should hire customer care staff who not only understand their products and services well but have skills necessary to deal with customers in the best way possible. They should be patient with customers and give satisfactory answers to customers’ complaints. Customer service staff should greet customers with pleasant smiles and show gratitude. They should always be courteous and respectful both on phone and in person. They should have problem-solving approach and ask for customer feedback. The following things can be found out:  What do they like or what don’t they like?  Are they happy with your products? Finding information revolves around asking right questions.

Engaging with existing customers is important. Engaging with potential customers and customers who shop with competitors is also necessary as it gives insight on their needs and why they prefer the competitors’ products. Keeping promises- Keeping promises reinforces customers’ trust in a company and their products. Promises on product quality, deliveries, or response time should be adhered to. Offering unique products tailored to meet customers’ existing needs that are not being met elsewhere minimizes competition. Specialization leads to a successful and scalable business. A niche market is very reliable and targeting prospects is easier. Moreover, customer retention rate is high. Social media platforms can be used to constantly assess the market. Customers may then be categorized based on budget, location, or needs.

• Who is my competition? Thirteen Colony Distilleries’ competition is other distilleries in United States of America. Google and social media can help reveal competition that Thirteen Colony Distilleries may not be aware of. They should search a keyword or two related to their industry. This is one of the easiest ways to develop an idea of competitors and is fast. This applies to spirits industry where customers have specific needs that require specific solutions. Thirteen Colony Distilleries can identify consumers’ needs through market surveys, questionnaires, observations, talks with potential customers or existing customers for feedback, and secondary data. Questionnaires are lists of questions, either open or closed that are to be filled in by participants. Observations can be passive or active.

Passive observation is where one watches how customers work in their natural environment while active observation is where one walks side-by-side with the customers to gain understanding of their perceptive. Thirteen Colony Distilleries can identify ignored customers through social media platforms. Most consumers are online, therefore, the best way to reach them is on social media. They can then be converted to potential customers once their needs are identified. Synthesizing attributes On identification of the target audience, the attributes and the needs of customers, Thirteen Colony Distilleries needs to synthesize the new products’ qualities according to Falkenstein. Attributes should be in conformity to Thirteen Colony Distilleries’ long-term vision, there should exist a genuine need for the product, the product should be unique in the market, the strategy should have been carefully formulated, there should be a possibility of developing new products around it and at the same time Thirteen Colony Distilleries should be able to retain the core niche market strategy that was identified at the beginning of business.